14 Steps On How To Start A Restaurant Business In Nigeria
Published On:December 3, 2021
how-to-start-a-restaurant-business-in-nigeria

This article on How To Start A Restaurant Business In Nigeria is regularly updated and can also be used as a guide in setting up your restaurant business in Nigeria etc.

How To Start A Restaurant Business In Nigeria

INTRODUCTION:

As Nigeria is on record to be the most populated black country in the world, no soothsayer or ‘DIBIA ‘ is needed for anyone who has a business mindset to understand that one of the businesses expected to thrive profitably is a restaurant business in Nigeria, This is simply due to the fact that large and growing population needs nothing but the availability of nutritious food for her teeming population to become healthy, thereby making fitness and survival essential factor that will promote the economy of Nigeria as a nation.

This made the establishment of the restaurant business in Nigeria to become a source of value addition to the ever-bustling and growing population of a Nation like Nigeria.

DEFINITION

What Does A Restaurant Business In Nigeria Mean? 

As it is commonly known that everything available around us has a history at its base or foundation, it should be noted for reference purpose that the first restaurant to be established was a soup restaurant in France. This was made possible by a soup vendor named Antonie Beauvillers in Paris between 1782 or 1786 and the restaurant was named ‘La Grande Taverns de Londres


A restaurant can be described as a facility in which food is directly provided to humans such as cafeterias, lunchrooms, cafes, bistros, fast food establishments, food stands, saloons, taverns, bars, lounges, catering facilities, hospital kitchens, daycare kitchens and nursing homes kitchens. It is a business that prepares and serves food and drinks to customers. Meal are generally served and eaten on the premises, but many restaurants also offer take-out and food delivery services.

There are some basic factors that differentiate and makes a restaurant stand out from other restaurant businesses which is a function of the Concept and purpose of establishing such a business making restaurants businesses to be of different types.

Different Types Of Restaurant Business In Nigeria 

1. Fine Dining;

2. Casual Dining;

3. Contemporary Casual;

4. Family Style;

5. Fast Food;

6. Fast Casual;

7. Cafe;

8. Buffet;

9. Food Trucks and concession stands;

10. Pop up restaurants;

11. Ghost Restaurants.

The most common type of restaurants business available in Nigeria is the fast-food businesses, whereby healthy foods are provided and served to customers on-demand in a conducive facility that provides ambience and comfort to the customer, although it is becoming more popular now that some restaurants provide door to door delivery of prepared foods to customers on demand.

No matter the type of restaurants business, one factor that is essential in this line of business is the provision and preparation of healthy and affordable foods to customers on-demand in accordance with requests made by the customer and in adherence to the quality standards expected from a business providing healthy meals.

ECONOMIC PROFITABILITY OF RESTAURANTS BUSINESS IN NIGERIA.

HOW BIG IS THE RESTAURANT SERVICE INDUSTRY IN NIGERIA?

With the sizeable population of about 200 million people in Nigeria, the food restaurant industry which belongs to the Quick Service Restaurant QSR of the economy is in no doubt a gold mine as it is expected to increase as geometrically as long as the population of Nigerians keeps increasing.

This assertion was confirmed by the Association of Fast Food and confectioners of Nigeria (AFFCON) an umbrella body of Quick Service Restaurant QSR revealing that the Nigeria Food industry is estimated to be worth over a trillion Naira with the Fast Food segment gulping over 250 billion naira and this number is expected to rise in the future.

With the statistics and estimation that confirmed how thriving the Food restaurant industry is in Nigeria, without any iota of doubt, the food restaurant industry in Nigeria is an investment destination that no one should shy away from as it has the potential if add to the Gross Domestic Product GDP of Nigeria economy with the prospect of taking many Nigerians out of the grip of poverty through the provision of employment opportunity for the teeming Nigeria youth estimated to constitute more than sixty per cent of the population.

Hence, at this point, it is imperative and essential to look deeply into how a restaurant can be established in Nigeria alongside the prospect of establishing a food industry in any part of Nigeria.

HOW TO START A RESTAURANT BUSINESS IN NIGERIA COMPLETE GUIDE.

As it has been affirmed in the introduction of this article about how profitable restaurants businesses are in Nigeria with it having the potential of making the Nigeria economy viable and strong, the need to delve into what is needed to build a sustainable and profitable chain of restaurants businesses having fleets of outlets across the length and breadth of Nigeria is quite essential and discussion about each step needed for a profitable restaurants business will be highlighted and discussed one after the order.

The steps needed in establishing a profitable restaurant business in Nigeria in 2021 are:

1. Get the right and appropriate Restaurant location in Nigeria.

2. Acquire a spacious outlet.

3. Ensure that the outlet is branded by professionals with a business name.

4. Employ the right staff.

5. Get a vision and mission for your business.

6. Employ a professional caterer.

7. Raise capital for your business.

8. Business Registration with Corporate Affairs Commission.

9. Ensure the neatness of your outlet.

10. UNDERSTANDING BUSINESS DYNAMICS.

11. Get Prepared.

12. Ensure that your mode of operation is in adherence with government agencies.

13. Get the required and appropriate equipment.

14. Have a Business Plan.

1. Getting An Appropriate Restaurant Location In Nigeria

The sustainability of any business concern depends on the business being established in the right location. Establishing a business as sensitive as a restaurant business can only become successful when the location of the business meets the expectation and demands of the would-be customers.

Hence it is important that anyone desiring to open a restaurant business in Nigeria is expected to have an idea of what the resident of the environment where the business will be located needs at a particular moment which can be extended to having an understanding of what should be the area of human needs and consumption that the established business will hold on to as a benchmark that would make it to stand out in the midst of other competitors.

Getting a good location to establish a restaurant business always give the business a competitive edge and leverage that would enhance profitability and ensure the sustainability of such business in the process of time.

2. Acquire A Spacious Location

Without any doubt, the establishment of a restaurant requires the usage of a spacious and roomy location that can accommodate people of every walks of life and has a capacity that is wide enough to give the momentary rest, relaxation and enjoyment customers expected from such facility.

Having a spacious facility guarantee a competitive edge for any Restaurant opened anywhere in Nigeria by providing leverage and advantage that could enhance the patronage of customers to your location.

Hence, in order to establish a profitable and sustainable Restaurants business in any part of Nigeria in 2021, one of the factors to be considered in making it a successful and sustainable business empire is for the interested business owner to acquire a spacious location.

The acquisition can be carried out by lease or by renting a space which should be carried out at a particular budget that should be within the range of what the profit Garner in the course of the business can cater for which would enhance proper management of the business and it will ensure the sustainability of the restaurant business in Nigeria.

3. Business Branding.

In other for a business like Restaurants business to have leverage and a competitive edge, the need for such a business to be branded is necessary and essential.

Restaurants business in Nigeria remain booming and growing which makes it to be extremely competitive, for any newbie to survive,  Any Restaurant business owner in Nigeria must consider branding as one of the necessary tools that will make his/her business viable.

Branding is one of the tools that promote the aim and objective of a business, it makes such a business to be known and it enhances the preservation of the vision and mission of such business.

Hence the need to ensure that opening a restaurant business in Nigeria in 2021 requires appropriate branding that will end up enhancing promotion and acceptability of the business because branding a business also promote the culture, idealogy and philosophy behind the establishment of the business.

Branding a restaurant business involves having a name to the business with a logo having good colours that express what the business stands for thereby promoting a speciality and a uniqueness that gives a human race to such business by standing as an ambassador that will enhance the spread of such business making it a household name.

We at 
NaijaCEO can help you with your branding

4. Restaurant Business In Nigeria Staff Employment.

This is another factor that needs to be considered when establishing a restaurant business in Nigeria in 2021.

It is essential to employ staff and workers who are ready to understand what is needed and necessary in promoting the aim and objectives of the business in alignment with the goals of the business in the course of time.

Getting capable hands and minds that believe in short term goals, middle-term goals and long term goals are essential for the all-around growth and sustainability of the business.

As Restaurants businesses are known as businesses that take care of the nutritional needs of people, it is essential for your workers to be people who have the mind of being hospitable and also fast in meeting up with the needs of people trooping in to patronise the business.

Staff and workers that should be employed must have the needed skills–both soft and hard skills with the required exposure and education needed in ensuring that the needs of customers are met at any point in time

Employing capable staff is one of the tools that help in enhancing the profitability and productivity of any Restaurants business in Nigeria.

Capable staffs make the goal and objective of the business to become achievable on a platter of gold without any difficulties.

Hence, the application of cutting edge human resource strategy is needed in establishing a restaurant business in Nigeria as it provides a solid foundation for the sustainability, profitability and productivity of such business to translate the mission and vision of such business across the length and breadth of the Nigeria business space.

6. Engaging A Professional Caterer Or Chef.

how to start a restaurant business in Nigeria

Depending on the reality on the ground when setting up your restaurant business in Nigeria, you may need to consider the employment of a professional caterer or chef to take care of some cuisines that required professional touch in the course of running your restaurant business.

As the business becomes enlarging with patronage becoming booming cutting across every division of the society, some customers needs might tend towards requesting for cuisines that are international and it is only a chef that can provide such in any Restaurants.

So, it is important you consider the hiring of a chef who could provide professional services with this will, in turn, make customers love your restaurant dishes in the course of running it.

This will also give you a competitive edge and leverage to the business and it will enhance the promotion of such business beyond local recognition thereby transporting it to be acceptable by non-citizens of the country like diplomats and expatriates who are longing to have a taste of their cuisine in Nigeria having the same ingredients and taste.

7. RAISING CAPITAL.

The availability of sufficient funds or capital is needed to ensure that the business has the financial capacity to meet up the needs of its customers accompanied by the ability to expand across the length and breadth of Nigeria.

Having a good amount of capital enhances the prospect of a restaurants business to cover more areas of operation that is essential to expand and give the required necessitated response to the demand of customers at any point in time.

Currently, You need to have around N500,000 – N10,000,000 to set up a conducive Restaurant business in Nigeria. This cost is bound to change and totally depends on how big you intend to start your restaurant business.

8. Business Registration.

Business registration is essential and needed in order to make such a business top-notch among other businesses.

The prospect of investors getting interested in your business becomes feasible once the business is registered with the corporate affairs commission.

Registering your Restaurants business in Nigeria with appropriate agencies gives your business the opportunity to have the chance to apply for loans and grants at any point in time.

The need for proper registration makes your business have an edge above every other restaurant’s business as it gives you the opportunity to present business plans and proposals that will be honoured by would-be investors who might be ready to inject funds into the capital base of your business.

It also enhances transparency as it gives a level of traceability about the requisite information needed for confirmation at the corporate affairs commission at any point in time.

We at NaijaCEO can help you with your company registration

9 . Neatness, Cleanliness And Hygiene.

Restaurant business in Nigeria Delicacies

As it is known across the board that cleanliness is next to godliness. It is essential to reiterate that one of the major factors to be considered in establishing a restaurant business in Nigeria is neatness, cleanliness and hygiene.

This should be enhanced and worked upon as a continuous process that should be looked to from the beginning of the business and it should be enforced in the day to day activities and operation of the business.

No Restaurants business can thrive and survive outside its ability to ensure that good hygienic condition is maintained as this provides a perfect way of making the restaurant the best point of satisfaction as the provision of food is concerned.

10. Understanding Business Dynamics.

Every business has its Dynamics that makes it unique at any point in time.

The uniqueness needed to make your Restaurants business competitive needs a deep understanding of the Dynamics of the business.

Restaurants businesses always have peak moments and down moments which if understood very well can prevent wastages from occurring on a daily basis.

The understanding needed to run a restaurant of massive magnitude needs the touch of professionals who are deeply experienced to know what is needed in managing the business.

Once the Dynamics is known, your Restaurants business in Nigeria ends up becoming a high-flyer among other restaurants businesses.

Optimizing and maximizing these Dynamics creates an avenue for productivity, sustainability and profitability at a maximum level thereby enhancing the proficiency of the restaurant business in meeting up the yearnings of the customers that need services that will meet up their needs at any point patronage.

11. Preparation.

In your desire and drive to have a restaurant business in Nigeria, your preparation to weather the storm of uncertainty is essential.

As the economic reality of a country like Nigeria is at a low ebb and it is quite wavy, someone who is interested in having a good restaurants business in Nigeria needs to prepare for uncertainties.

As the price of foodstuffs keeps soaring high with the cost of living skyrocketing, one needs to understand that this will pull down the purchasing power of the average man and woman on the street who is expected to be part of human statistics expected to turn up patronising any established Restaurants.

This will eventually make the food restaurant business difficult to manage.

Hence, the need to get prepared for economic turbulence is essential and you are expected to understand the dictates of the Dynamics that will crop up from the harsh economic realities obtainable in Nigeria in the course of running your food restaurant business.

12. Adherence To Government Policies.

Due to the sensitive nature of the food restaurant business, as it influences the health and living of the consumers, this made it to be an important sector of the Nigerian economy whereby it is guided by many strict government policies at every level of the economy.

Hence, the need for you to adhere strictly to policies from government agencies is quite important in order to forestall the smooth running of the business.

Policies from the ministry of health, Standard Organization of Nigeria, Consumers Protection Agencies are to be adhered to strictly as this enhances consumers trust thereby increasing patronage in the course of the business. Even staffs in charge of food preparation are to be subjected to periodical health check-ups in order to prevent infections that might be transferred through the preparation of food in the restaurant.

13. Purchase The Right Equipment.

In order to have a clog-free operation in the restaurant, the need to have the right and appropriate equipment that will facilitate smooth operation is essential and having this will enhance fast delivery of services to the customer.

The quality of services delivered is a function of the equipment used in the course of operation.

Quality equipment guarantees good service delivery in the course of running any Restaurant.

As poor as electricity supply is in Nigeria, any successful Restaurants business needs the availability of generators or other means of power generation in the course of operation.

14. Business Plan.

As business becomes stable and prosperous, the need to up-scale becomes necessary and needed, this will entail the need to expand by building more locations or renting outlets or there might be a need to purchase more equipment that is needed in taking care of the operation.

Hence, the need to source for loans or funds arises.

Sourcing for loans, funds and grants are always successful as it is always granted based on the preparation of a feasible business plan. This made the preparation of a business plan essential in the course of starting or even running a Restaurants business in Nigeria.

A business plan is very essential because it will open your eye to the restaurant industry in Nigeria and not just for loan applications.

We at NaijaCEO are the leading Business plan writing company in Nigeria and can be of help to you.

MICAH ERUMAKA aka NAIJACEO
Micah Erumaka

Micah Erumaka

About Micah Erumaka

Micah Erumaka is the Founder of LiaonCEM solutions which owns NaijaCEO. He is an Internet Entrepreneur and a content creator. After the failure of his first company at age 18 he started NaijaCEO to help entrepreneurs with the information they need in operating a successful business in Africa

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